5 minute tax update: 30 Nov – 4 Dec

Report into TPB leads government to reconsider accountants’ advisory role in super
TD on taxation of benefits paid while posted overseas
Legislative instrument issued on supervisory cost recovery levy
Charity scam growth means credential check is essential
SMSF trustees pushed towards SuperStream uptake
ESS case exposes risk of loss
Capital gains withholding: Impacts on foreign and Australian residents
Tasmania releases guidance on First Home Owner Grant and car duties

Report into TPB leads government to reconsider accountants’ advisory role in super
The final report into the TPB recently released has prompted the government to review what advice accountants and tax practitioners can or cannot provide to clients in regard to superannuation. This is in light of the removal of the accountants’ exemption. One of the recommendations in the final report, which the government has indicated it agrees with (see recommendation 7.2), states: “Having recommended the regulatory burden on tax (financial) advisers is to be reduced, the review believes it is reasonable that a similar level playing field should be considered for accountants.” Although the government says consideration will also be given to recommendations in this area stemming from the Hayne report.

TD on taxation of benefits paid while posted overseas
Draft TD 2020/D2 provides the tax treatment for certain payments or benefits made by government agencies to employees who are posted overseas. It applies to employees who are posted overseas for a period of greater than six months, will continue to be paid salary and other entitlements for the duration of their posting, will stay in settled accommodation (such as a house, unit or apartment) provided by the agency while posted overseas, and will remain a resident of Australia while posted overseas. The comments period is open until 11 December 2020.

Legislative instrument issued on supervisory cost recovery levy
This instrument specifies certain matters about the size and composition of ASIC’s regulated population and of the metrics that apply to each industry sub-sector within that regulated population for the 2019-20 financial year.

Charity scam growth means credential check is essential
The Australian Charities and Not-for-profits Commission (ACNC) has advised donors to check a charity’s credentials online before donating, following a significant rise in charity scams. You can checking a charity’s credentials on the ACNC online Charity Register before donating.

SMSF trustees pushed towards SuperStream uptake
The ATO has announced that from 1 October 2021 self-managed super funds will need to use SuperStream to rollover any super to or from SMSF. Trustees will also be able to use SuperStream to receive and action certain release authorities electronically. SuperStream is a data and payment standard used for digital transactions within the super industry. Many SMSFs already use SuperStream to receive contributions, and large super funds also use SuperStream as their main way to transact with employers, other large funds and the ATO.

ESS case exposes risk of loss
The AAT has held in a case (Gennai and Commissioner of Taxation [2020] AATA 4667) that there was a real risk of forfeiture or loss of an interest acquired under an employee share scheme (ESS) based on the terms of the scheme, and therefore section 83A-105(3) of the 1997 act did apply and operated to defer inclusion of the discount in the applicant’s assessable income to the 2015 income year.

Capital gains withholding: Impacts on foreign and Australian residents
Foreign resident capital gains withholding (FRCGW) applies to vendors disposing of certain taxable property under contracts entered into from 1 July 2016. The FRCGW tax rate is 12.5%. It also now applies to real property disposals where the contract price is $750,000 or more.

Tasmania releases guidance on First Home Owner Grant and car duties
The Tasmanian State Revenue Office has released guidelines on the First Home Owner Grant — applicable to eligible transactions between 1 July 2016 and 30 June 2022, and Dutiable value of motor vehicles — clarification on calculating the dutiable value of a motor vehicle and the applicable rates of duty.

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